​**The Ins and Outs of Hard Money Conversions in TX**

[Sohrab Khosravi]

**The Ins and Outs of Hard Money Conversions in TX**

As an experienced lender, we realize that securing permanent financing on an investment property can sometimes be confusing. Understanding the difference between hard money and conventional money is vitally important. That is why at AMP Lending, we pride ourselves on educating our clients on the lending process. This helps our clients feel comfortable about the plan they have set in place to ensure financial security for themselves and their families.

Hard money loans are a necessary part of the investor portfolio. If the property you're buying has deferred maintenance that requires rehab and you don't have the cash to buy the home outright, hard money is the way to go. Most hard money lenders will lend up to 75% ARV (after repair value) to cover repairs and acquisition, but you will need an exit strategy. Hard money loans are bridge loans and are temporary.

Getting pre-approved for a traditional loan first to ensure your exit out of the hard money loan, is the first step. To get you started and on the right path, here are a few titbits on what to do and expect during the process:

1.Before you start looking for a home to purchase make sure you’re pre-approved with a lender.

2.Not all lenders are created equal when it comes to investment financing. Make sure you are using a lender like AMP lending, which specializes in investment financing.

3.Income: Make sure your lender is asking you for income documentation and assets, before a pre-approval letter is issued. If they don't ask you for these items, they are not looking at the full picture, and you might run into problems.

4.Assets: Having clean bank statements are critical part of closing quickly. Make sure any deposits in your bank account in the past 60 days are provable with copies of checks or detailed transactions. Cash deposits are not provable, and will be required to be backed out of your total balance. Retirement accounts can be used as reserves. We will use 60% of the balance of the 401k (or equivalent), without the funds being removed from the retirement account.

5.AMP lending can use future rents on a vacant property that you are purchasing to offset your mortgage payments.

6.Once a lender has determined you are qualified for permanent financing, it’s as good as cash!

Give us a call today!!!

Sohrab (Rob) Khosravi

Loan Officer

AMP Lending

NMLS # 1270826

Direct 281-574-6332

Cell 281-840-2717

[email protected]

Complete a free Pre-Approval Application at www.askmortgagepros.com/rob